tv The Situation Room With Wolf Blitzer CNN July 19, 2011 2:00pm-4:00pm PDT
pretty cool, right? >> i'm turning on my ipad right now. i'm going to watch us. >> juice it up. and we can watch wolf blitzer who is prepping here for "the situation room." that is it for us, joe johns. see you back here tomorrow. rupert murdoch says the phone hacking scandal is not ultimately his fault. this hour, the rivetting testimony about the broken trust, the shattered ethics and those who should pay for alleged crimes. stand by. hackers say they turned the tables on murdoch's company, tap into internal e-mail and other corporate secrets. they're threatening to go public with what they found. and president obama embraces a bipartisan compromise that could potentially, at least, be a way out of looming debt crisis. he's urging house republicans
not to waste their time on a symbolic vote due to happen very soon. i'm woft blitzer here in "the situation room." >> rupert murdoch says this is the most humble day of his life. a titan of news business, he was called on the carpet before the british parliament today over the phone hacking scandal that shocked and afalled the world. along with a son and former chief executive, murdoch was hammered with questions about alleged crimes that brought down his popular tabloid, "the news of the world." >> we felt ashamed of what had happened and wanted to bring it to a close. >> people lied to you and lied to their readers.
>> we had broken our trust with our readers. >> it was rivetting, rivetting with the hours before these members of parliament. the headlines richard on what we learned. rupert murdoch said and admitted, this was the most humble day of his life. he was ashamed, as you just heard. but he also learned that they don't take responsibility for what took place. he said they had been misled by those people he trusted and people they had trusted. and how the people at the top did not know about this scandal that was growing nor and more. instead of what i think we did get very much in their favor,
both in rupert murdoch, from james murdoch and rebecca brookibroo -- rebekah brooks, they sat there hour after hour, taking the questions in good humor. and that gives them credit to their benefit, that they did go through this process. ultimately, though, tonight, as rupert murdoch did say he doesn't take responsibility for what took place although he will have to be the man that sorts it out. >> are you responsible for this whole fiasco? >> no. >> who are responsible? >> the people i trusted to run it and then maybe the people they trusted. >> can you name people? >> i worked with mr. hinton for 52 years and i would trust him with my life. >> what i think is interesting in that exchange, the normal
phraseology for people doing that is, i was not to blame, but i take responsibility. the buck stops here. and what we didn't get there was that phraseology or some version thereof. we also finally, wolf, we did get later on in his final statement the hacking was wrong, the payments to the police were wrong, no excuses. >> and there was an incident there at one point where an intruder just showed up with some shaving cream. tell our viewers what happened. >> the pictures don't really tell the full magnitude of the story. as you can see on the screen now, the intruder, an activist, a comedian came in and basically tried to -- well he did. he successfully pied rupert murdoch with shaving foam on a plate. what was interesting, if you look at the picture again, and you see close up, wendy dang,
rupert murdoch's wife launches out of the seat, hits good night with the pie, grabs the plate and lunges into her face. murdoch does restart the hearing ten minutes later. he's without his jacket and apologies all around for what took place. >> a remarkable day in london in parliament today. we're going to stay on top of this story. richard, thank you very much. lots of emotions, lots of tough questions in the parliament. was there more heat, though, than light? and joining us now from london, a member of the parliament. she's a member of the conservative party. thanks very much for joining us.
do you think you got answers from rupert murdoch today? >> we got lots of answers. some questions still remain to be answered. if they didn't know, why didn't they know. but we did get very exhaustive answers to difficult questions over a sustained period of time. >> what's the biggest question you still want answered? >> i think it has to be if you didn't know, why didn't you know, and that would apply to all three of our witnesses today. perhaps the most unconvincing part of the system was he wouldn't have noticed the "the news of the world" because it was such a small and insignificant part of his media operation. it may be small in terms of financing, but it's not small in terms of reputation and in terms of being a major flagship british paper. and you would think if there was a threat to its reputation and integrity, it would have certainly been kicked you have the line or should have been kicked up the line to mr. murdoch. >> do you believe both murdochs
and reback ka brook-- rebekah b were telling the truth today? >> i found them to be mostly convincing with a couple of exceptions. as i just said, i don't buy the argument they didn't know because it was too small. but overall, i have to say, i found them to be credible witnesses and the failures that i saw today in news corp. were failures of corporate governance rather than failures of malice. >> where do you go from here? >> we'll introduce a root and branch review into practices in his news rooms across the world and he said to me today he would, in fact, do that.
and what i think we need to see and what i'm sure the prime minister will be announcing to the commons tomorrow is more of what we've heard from the judicial inquiry and a new relationship, certainly in britain between the press and politicians whereby meetings will still go on, but now everything will be open, above board and logged every time. which i think is a reform very much overdue. >> do you have suspicions about the prime minister david cameron that he may have known more than he's acknowledging? >> none whatsoever. and even among the most rabid labor parties i haven't heard anything about the prime minister's integrity. people talk about the judgment in hiring andy coulson, but hiebd sight is absolutely perfe perfect. and many in the press at the time thought it was an inspired appointment. also, mr. coulson's guilt hasn't been proven so far either. so no, the prime minister his integrity isn't called into any kind of question. when he announced a very strong
statement tomorrow and his mps backing him. indeed we've had polling in this country showing the conservatives taking a lead over the labor party. so this isn't stirring the public. >> you were asking the questions when that intruder came in with the shaving foam or the shaving cream and started throwing it at mr. murdoch. what was your reaction? what was it like in that room. >> i was absolutely horrified frankly that the dignity of our witnesses could be compromised in that way. and i think the parliament security authorities will have some very serious questions to answer. i know we're going to be referring it to the speaker. i was absolutely furious because this was a very lengthy, very serious session of parliament with two of the most important media executives in the world in front of us and we were asking very serious questions about phone hacking. and i thought a, the protester was absolutely pathetic, but b, that mr. murdoch senior as i said, did himself no end of
credit by being willing to go on and answer my questions nevertheless. in fact, it was quite hard to gear myself up to make those questions as tough and as hard as i had originally planned them because i admired his courage sitting in front of me after that incident. >> she was very tough on both murdochs. we'll have more on my interviews with this member of parliament coming up. also coming up, are hackers now turning the tables on the british tabloids? we're going inside new claims alleging just that. plus, new signs of a potential break through in the political stalemate over the debt crisis. i love that my daughter's part fish.
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his news speech in vegas. wynn told listeners on a call, quote, this administration is the greatest wet blanket to business and progress and job creation in any lifetime. unquote. since he was elected, president obama hasn't had the strongest, warmest, fuzziest relationships with business leaders who misdemeanor many of us strongly oppose his health care and wall street reform laws that he has pushed for since his inauguration. wynn says business leaders like himself who have business opportunities and the capital to act on them are sitting on the sidelines in fear of president obama's policies. despite wynn's tirade, his company did quite well in the second quarter, but steve wyss says he would be doing even more if it wasn't for this president's policies and overall philosophy as president. wynn claims his company alone could add 10,000 jobs in las vegas if it wasn't for this political climate.
wynn is a self-described democratic businessman but says he supports both democrats and republicans and he's not happy with anybody in washington these days. he thinks congress and the administration are so focused on olding their jobs for the next year that the entire discussion in washington right now is, quote, nauseating, unquote. i would be inclined to agree. the question is this. steve wynn calls the obama administration the greatest wet blanket in business and industry in his lifetime. is he right? up to $2 trillion sitting on the sidelines. they're not committing and putting that money to work because they don't know what the future holds. >> there would be billions of jobs created over the next few years. let's see what happens. thank you.
rupert murdoch's media empire under the scrutiny of british law makers today. it's also under attack by some hackers. what do you know, brian? >> the backlash is apparently not limited to the chamber of britain's parliament. a hacker group has targeted murdoch's newspapers and at least one other person embroiled in this scandal. >> rebekah brooks opens with words of contrition. >> i would like to add my own personal apologies. >> the former chief executive of news international may be wondering if hackers have turned the fables on her. hackers apparently from the notorious group have claimed to breach servers including "the sun" newspaper and "news of the world." it boess on the twitter feed, we own sun, news of the world. one hacker brags, we're signature on their e-mails.
the hackers threatened to release e-mails publicly, but some of the information appears out of date. they tweeted e-mail addresses and passwords of rebekah wade, her maiden name, which she hasn't gone by for two years. >> they'is is an older password file at the sun from when rebekah brooks was at the sun. it means they're storing this information at "the sun" and it's still vulnerable to attack. >> most companies are advised to destroy old data like that. they also climb credit for this hack, steering users to this fake story saying rupert murdoch was found dead in his garden after taking large quantitities of palladium. we tweeted them to ask why they
may have done this, called a number we had for them. we got no response. news international will only say they were aware of its a hacking attempt and its sites are back up. and this all comes as we're getting word of a major takedown operation targeting another hacking group called anonymous. officials telling cnn that at least 14 and up to 16 people have been arrested across the country and possibly in great britain as well, targeting the hacking group anonymous. this group is believed to be responsible for a disruption of service back in december, targeting mastercard, visa and paypal in retaliation for those corporations ending their affiliations with wikileaks. also anonymous links to several other high profile hacking events over the past year. there's been a major takedown. at least 14 people, up to 16 arrested across the united states and in europe. search warrants issued in the new york area.
these arrests took place in new york, new jersey, california. and we're told maybe at least one in london, wolf. so a major operation targeting that hacking group anonymous. there are loose links between anonymous and lolsek. >> the agents asked them very aggressive questions about anonymous. this could be abmajor operation because cyberexperts will tell you, once they get some of these people in custody, they tend to turn on others. it may not take down anonymous and certainly won't end up hacking, but it's a major operation. >> a fascinating part of this
story. >> on capitol hill, two sides unveil their plans to tackle the debt. only one got the white house's seal of approval. we'll tell you which one the president prefers. over the south pacific in 1943. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. sir, can you hear me? just hold the bag. we need a portable x-ray, please! [ nurse ] i'm a nurse. i believe in the power of science and medicine.
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emotional meeting before parliament. >> it is our determination to both put things right and make sure these things don't happen again and to be the company that i know we've always aspired to be. as for my comments, mr. chairman and my statement, which i believe was around the closure of the "news of the world" newspaper. >> before we get to that, i would just like to say one sentence. this is the most humble day of my life. >> the question of what's acceptable and what isn't in terms of investigative techniques is an important one. but let me be very clear. the conduct for our employees, journalists are very clear. breaking the law is a very, very serious matter. it should be, people who are lawbreakers should be held to account. and in a matter of something like phone hacking or payments to police and things like that, we just don't think they should have any place in our business.
>> mr. murdoch, do you accept that ultimately you are responsible for the fiasco? >> no. >> you're not responsible? who are responsible? >> the people i trusted to run it and maybe the people they trusted. >> you must be horrified by the scandal and the fact that it's cost you the bskyb transaction and led to the closure of the "news of the world." who do you blame for that? >> well, a lot of people had different agenda i think in trying to build this hysteria. all our competitors in this country formally announced the consortium to try to stop us and they caught us with dirty hands and they built hysteria around it. >> we've been very clear that serious allegations of wrongdoing have been levelled by "news of the world." >> did you close the paper because of the criminalalty?
>> yes, we felt ashamed of what .had and wanted to bring it to a close. i was absolutely shocked, appalled and ashamed when i heard about the milly doweler's case. >> i had no idea that milly's doweler's phone was being accessed by "news of the world" or even authorized by someone at "news of the world" is abhorrent are to me as everyone in this room. >> there was also a footnote to today's hearing that we found worth noting at cnn with the british parliament member louise mench. when you asked this statement. i'm going to play what you said
in parliament today. >> piers morgan, now a celebrity anchor at cnn, you do not appear to have asked him any questions at all. in that book, he post boasted that using that little trick enabled him to win scoop of the year. that's a rm toered editor being very open about his personal use of phone hacking. >> what kind of accusations do you have to make that kind of accusation against piers morgan. >> well, i said what i said in the committee, wolf. and i'm afraid right now i'm going to say i can't comment about it outside of the committee room, because as mr. morgan will not, inside parliament when i speak in parliament, i'm protected by
parliamentary privilege. mr. morgan is a very rich man so i'm sure he will take careful note of what i said and look into it. that's the best i can do on legal grounds. >> piers morgan is joining us on the phone right now. i want him to respond to the direct allegation you made against him and his reputation. piers go ahead and respond. >> well, i'm amused by her cowardes in refusing to repeat that allegation now as she may be already aware, she came out with an absolute blatant lie durlg those proceedings. at no stage in my book or indeed outside of my book have i ever boasted using phone hacking for any stories. at the time at "the mirror" have i macked a phone or published a
story by hacking a phone. and what she did was an outrageous attempt to smear my name, cnn's name, "the daily mirror's" name and to have the breathtaking gall to sit here and say i can't possibly repeat that because i haven't got privilege is an outrage. and i call on you to repeat it, repeat what you said about me and then maybe go and buy a copy of my book "the insider" and see where in that book, these dlams that you made today in a televised committee watched all over the world, where that claim is in that book. because it isn't there. >> all right, mrs. mench, do you want to respond to that? >> as i've just said, i made the claims in the select committee and people will look at them. >> all right, let's continue our conversation with piers morgan. he's joining us live right now. she clearly piers did not want
to say in public what she said behind closed -- behind open doors while the whole world was watching. but she has parliamentary immunity so she's not going to get into a fight with you on that. is there anything else you want to say before i move on to some of the substance of what was done today? >> well, only that -- i mean, she made some very specific claims and, in fact, later on she repeated them even apparently to me giving tutorials in phone hacking, how i hacked people myself. and she has absolutely no evidence for any of this, and she based it on what she claimed i had published in my own volume of diaries. well, you've seen the entries now, wolf. and i've read the entries to her earlier. there is no such thing. the only entry in my book referring to phone hacking was when somebody warned me that my phone might be being hacked and advised me to change my pin number. so i was pretty outraged actually. when somebody makes such a claim and does it based on a complete
falsehood and then hides behind parliamentary privilege, which i think your view lers find a rather mysterious entry. a politician can say anything you like and you can't sue them. is pretty rich, which she now must know having seen the book, presumably, none of the things she said i wrote actually exist in the book. >> let's talk about the bigger picture right now. mr. h this testimony today, you know the murdochs, you worked for them at one point in your life. what have you come away with. >> well, the most extraordinary spectacle, i watched a eed most. rupert murdoch made me one of the youngest editors when i was 28 years old. i probably wouldn't be here without his help. i also know rebeckah brooks ver well. i'm proud to be their friends. i felt it was a very tough day for them. i thought the outrageous attack on rupert murdoch by that
protester should never have been allowed to happen. i think it's a scandal that it did. but he dusted himself down as you would expect. he got some pretty tough questions. i thought some of the mps landed a few blows. my summation of the thing was that nobody proved to i don't think any mutual observer that rupert murdoch had any personal knowledge of what was going on or james murdoch for that matter or rebecca brooks. what you have seen and clearly management failings and how they controlled this story from when it first came up, and i think they would accept that. clearly this was a much bigger problem than they realize. if rupert murdoch had his time again, he would have gotten stuck into this personally early on and knead sure an appropriate action was taken. at the end of the day, money talks. i think that the stop price of news corp. rose 6% today. so clearly the markets believe that no death charge blow was landed except possibly by
wendy deng. . >> how much pressure were you under when you edited these newspapers in london to get the scoop, to get the big story and to do whatever it took to get that story? >> huge pressure. and i detail that in my book as well. you know, when you're an editor of a british tabloid newspaper, you're in a commercial war and you're encouraged to be aggressive, forceful, to pursue stories with the full mite of your reporting army. but most news organizations are the same. rupert murdoch's happened to be more successful than most over the years. the king for me listening to murdoch, a lot of what he said resonated. people may be bemused by what he said, but when he says he didn't have much day to day contact with these papers, that's true. i spoke to the editors of "news of the world" maybe once a week, once every two weeks. he didn't ask me about methodologies of stories. he would say what's going on and you told him what stories. i had editors, i have managers,
i have lawyers, i have accountants. they do all the box ticking here. my job is just to get an overview of what's going on. when you run a company of 50,000 people, it is a bit ridiculous to expect rupert murdoch to be all over the microdetail of how each individual part of the company gets run. he may have been let down by other people that he charged to look after this detail. and big mistakes were made. and when it came to the phone hacking of the young missing girl, utter outrages. and everybody shares that view. >> piers, i know you're going to have more on this. we'll be watching 9:00. eastern. thanks very much for coming in. >> thank you, wolf. take care. >> anyone who gets migraine headaches knows they can be debilitating. michele bachmann apparently gets them as well. could that be a pro-b for her presidential campaign? and refugees from somalia threatened by drought and starvation. cnn is using its global
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>> the president says it's time to start talking turkey before the deadline to raise the debt limit two weeks from today. he says it may not be too late to get a huge grand compromise. it would save about $4 trillion over ten years by closing tax loopholes and reforming social security and medicare spending. he says he sees promise in a bipartisan senate compromise that might increase support for raising the debt debt limit. yes, the plan is balanced. we just received it so we haven't reviewed all the details of it. i take it we're in the same playing field.
my hope is we'll start to gathering everybody over the next couple of days to choose a clear direction and to get this plan solved. >> the plan has deep cuts in discretionary spending and some of the entitlement programs as well. it and the house is scheduled to vote tonight on a republican plan known as cut, cap and balance. it would cut spending by $111 billion next year alone and increase the debt ceiling only if a balanced budget amendment is approved by congress, sent to the states. that legislation is expected to pass the house but eventually die in the senate. but even if it passed, the president said he would veto it. in texas tonight, a high-powered meeting that could help kick off
governor rick perry's run for the white house in a rather crowded republican field. a gop source confirming that potential donors and fundraisers to a possible rick perry campaigning together in austin, texas. governor perry is serious about making a decision. i'm hearing from a lot of his associates. he's likely to do it. what are you hearing right now. >> he will make a decision about running for president by the end of the summer. and if he does get into the race, his faith just miegts take center stage. >> the republicans are satisfied for the field of 2012. rick perry recently told an iowa newspaper that he's feeling called by his faith and his
friends. >> my mother may call me for dinner. >> so there was no religious overtone pd. >> no, no, i don't ever get confused. i am a man of faith. >> gop insiders see a pro business governor who scores both tea party activists and christian conservatives. when perry announced new jobs coming to the state's high-tech community this week, he got a cameo playing quarterback in a college football video game. >> this is governor rick perry. >> but it's what he will do at another field that is coming under scrutiny. he plans to lead a day of prayer in an event dubbed the response for what organizers call a nation in crisis. >> we need god's help. that's why i'm calling on americans to pray and fast, like jesus did. >> but critics say the response blurs the preparation between church and state and point to one pastor who called the statue
of liberty a false idol. >> that's a dee no, ma'amic idol right there in the middle of new york harbor. people say well, it's patriotic. what makes it patriotic. why is it? it's the statue of a false goddess. >> perry says it's unfair to link him to the endorsers. >> just because you endorse me doesn't mean i endorse everything you say or do. >> he's hitching himself up to it. there are some dogs too ugly to hug. but he seems willing to do it. >> democrat jim hightower was beaten by perry for texas agriculture commissioner two years ago. he says perry's call to run is an obvious appeal to conservatives, called by another governor, george w. bush. >> i don't know what exactly he believes. i know how he's positioned himself. that's far to the right of george w. >> pastor job long who plans to attend the response sees something else. >> i believe it's absolutely a
possibility that god could be speaking to him. >> to have him run for president? >> yes, possibility, absolutely. >> from a teleconference from south carolina pastors to a dinner this evening with a group of potential presidential donors, rick perry's schedule suggests he's seriously considering a run for the white house. there's a saying down here that everything is bigger in texas. and so is the speculation swirling around rick perry. >> good report. thanks very much. public images of a problem you need to know about right now.
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>> per somalis faced many enemies over the year, but one that can't be defeated is draught. it parched the land and left so many scrambling for food and water. david mckenzie reports from a refugee camp in kenya. >> it started waiting outside the camp before dawn. some walked many days and miles to get here
those too weak, left at the roadside. children managing the march. it's almost noon and people are waiting to get into the reception area of the camp. these camps are overflowing, but still almost 5,000 people come from somalia each week. mohammed fled with his family, gaunt and tired, he explains the choices he faced >> translator: we could have died if we stayed and if we died or lived is in god's hands. i came here to live. >> people once split from the conflict grieve from hunger. the first rations must last them two weeks. aid agencies tried to cope with the influx that are yurpd funded and overwhelmed. >> what is most needed. >> water, food, shelter and medical care in equal amounts. we need land for people to settle to receive the services.
>> these camps were designed for tens of thousands and now that number is close to a half million. it's the largest refugee camp in the world. it's the children who suffer the most. like noria who is 2 who weighs as much as a newborn. aaden is too sig to eat and is fed through a tube. >> they may have had supplies for them, but as soon as they run out of food and necessities, they come to the hospital and when they come, they get it. otherwise they end up here. they must walk miles to get water and wait days to get food. they say each this suffering is better than the horror they left behind. cnn, kenya. >> go to cnn impact your world if you want to help and you think you do.
we will continue coverage of this horrible story in africa. >> rupert murdoch is not responsible for the phone hacking scandal, but should he resign from the news empire. we will loo look at the legal and ethical fallout. jack cafferty will be back with the cafferty file for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around. at ally bank you never have to deal with an endless automated system. you can talk to a real person 24/7. it's just the right thing to do. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses.
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. taxi tabs in response to the government's position to deregulate the cab industry. flag-draped coffins in australia. performing at the sydney opera house. in outer space, check it out. atlantis departs from the space station for a preliminary scan of the thermal protection system. hot shots and pictures from around the world and around the universe today. let's go to jack for the cafferty file. i love the shots. >> do we know how the scan came out? >> good. >> a scan of the thermal system. you need that when you reenter the atmosphere >> they are coming back. for the last time for the
shuttle program. the question this hour, the ceo calls the o damma administration the greatest wet blanket to business and job creation in his lifetime. dennis writes yes, the proof is business is sitting on trillions in cash and refusing to invest capital and not hiring anyone not because of political reasons, but we are scared of the taxes and debt and pro union and anti-business rhetoric and uncertainty. this administration is thrown at the private sector. joe in texas writes steve wynn is only right is that obama is the current example of an administration of the wet blanket administrations for decades. the only way is if he repeals and presidential letters of past administrations according to forbes. steve win was worth 2.3 billion, up from 1.5 billion.
a bailout. besides, business is gambling. not exactly an interior. he sounds like a false authority to me. jan in north carolina, contrary to what the democrats think, businesses necessary business to make money and not provide social justice or whatever the left wingers think. if you regulate them to the point that they are not making money, what is the motivation to be in business. you can't regulate business to the point of strangulation and expect the economy to grow chandler in new jersey writes talking about steve wynn. like the other, he wants freedom from government oversight of any kind. of course he wants to be able to push the tax burden on the working classes. the silly whining that is the cause of high unemployment is a smoke screen masking the agenda
of the ultra wealthy. you want to read more, go to my blog. cnn.com/cafferty file rupert murdoch answers about the news corp.ration hacking scandal and also president obama praises the new plan to help the u.s. overt a huge debt disaster. even as the house votes on another plan this hour. plus, the health concern that has people questioning whether michelle bachman would carry out presidential duties we want to welcome our viewers in the united states and around the world. political headlines and jeannie moos straight ahead. you are in "the situation room" . >> a remarkable scandal with the
media empire with british police and government. he was grilled with his son and a former top deputy in a sense expect cal that included a physical attack on the media mogul. dan rivers is in london with details >> this is the most humbling day of my life. >> this was how rupert murdoch started. he had no idea what was about to literally hit him. what would have been a secure hearing room, a personal attack on one of the world's most powerful media tycoons. his wife with a shaving cream pie off camera. as the police run in, it was clear that mr. murdoch was unhurt. before that, rupert sought to distance himself from the news of the world thought to be one
of his favorite titles. >> this is not an excuse. here's the one with less than 1% of our company and 53,000 people around the world. we have prior and great and unethical and distinguished people. >> one was sitting beside him. his son whose apparent lack of knowledge at times seemed almost comical. here questions about key documents that weren't initially handed over from news international's lawyers to the police >> the lying with them. >> i cannot speak to other individual's knowledge in the past. i can't. i simply can't speak for them. >> stewart? >> the same goes.
i simply can't speak for them. >> critics call this stonewalli stonewalling. james murdoch was clear on one point. >> i would like to say how sorry i am and how sorry we are. to particularly the victims of illegal voice mail interceptions and their families >> at times they appeared overwhelmed or unsure how to answer or could silence his following specific questions. >> mr. murdoch, at what point did you find out criminality was in need in the world? >> the impression was the two men who were at best out of touch with what was happening in their company. at first ignorant and a phrase that was lost >> do you care to elaborate?
>> it is a term that came up in the enron scandal. it's a legal term. it states that if there is knowledge that you could have had and should have had, but chose not to have, you are responsible >> mr. sanders, do you have a question? >> i don't know what you would like to say. >> i'm not aware of that particular phrase. >> it was then the turn of rebecca brooks. >> i have never paid a police myself and knowingly sanctioned a police officer. i was referring if you saw at the time of the home of first committee recently and you would have various from fleed street
discussing that in the past they have been made and i was referring to wide-held belief and not practice. in fact, in my experience of dealing with the police, the newspapers come free of charge. >> the scandal came with an incredible cost to news international. a year ago the name murdoch put fear into the hearts of many british politicians. today it was clear the politicians have no fear. cnn, westminster >> rupert murdoch sits at the head of a vast media empire. tom, what do we know about the news corp.rations's hierarchy? pay pay a lot of them are shaking. let's look at the kingdom. the chairman and the ceo, look at the people underneath them. that's murdoch's son.
the chief operating offer and the ceo. next to him is rebecca brooks the former ceo of news international. the former head, he was the one running the newspaper before her and then we come to the news of the world down here with the folks who were actually being questioned about this improper activity. here's the connection that the people are trying to establish in the questioning here. from him to him to him to her. this question. how how tight it is from where the bad things are going on. i didn't know anything about that. you know from many investigations and many organizations that are caught doing things that are wrong, investigators look at the connections often when there is not a business relationship and saying how do we connect the people and prove these people
knew something even though they say they did not? beyond that structure of just this group here, other things have to be considered. another part of the castle, there is the news corp. board. 17 individual who is sit on the board of directors here this is what a lot of people are going to look at closely. the news corp. board and the news corp. u.s. holdings here. to see first of all if this chain over here collapses under this questioning. if these people can be implicated even though they say they didn't know about it. beyond that, do the implications spill over to other parts of the empire through the board or the u.s. holdings.
>> thanks very much. i was intrigued because sitting behind both, he was the white house deputy sitting behind at the hearing. and i have known him for a long time since the first term of the clinton administration. he left the white house to work for the justice department around one of the divisions of the justice department before mayor bloomberg asked him to be the education chancellor in new york city, something he has done for years until recently joining news corp.ration and not helping in damage control for the mur docks. let's dig deeper with the senior legal analyst and howard kurtz, the host of reliable sources i saw when the robust apology
not only in the newspapers, but the damage control, did you get a sense that he was involved in helping him deal with the crisis? >> he got good legal advice. that was apologize and don't speculate and answer only what you can precisely prove. don't volunteer any information. he got the contrition part right. he was humble and sorry, but when it came to taking responsibility, the old murdoch confidence arrogance came through. there was a great moment where one of the problems of parliament said are you responsible and you just were waiting for him to say yes, the buck stops here. he said nope, they let me down. >> let me play the clip and we will get how to respond. listen to this. >> do you accept that ultimately you are responsible for this
fiasco? >> no. >> you are not responsible? who is responsible? >> the people i trusted to run it and then maybe the people they trusted. >> what did you think of that response? >> it was not very persuasive, wolf. earlier he had specifically defended rebekah brook who is has since been arrested and the guy who used to be in charge of the "wall street journal." he gave a halting performance and it may have been smart legally, but in the court of public opinion, he looked out of it. like a ceo not in touch with what was going on in his company as the evidence gone to mound of wrong-doing at the news of the world and overseen by people he put in place. >> did you get a sense that there were others who were legally in trouble as a result of this broadening scandal?
>> there a lot of people under arrest. >> beyond those already under arrest. >> absolutely. scotland yard has been embarrassed by the whole situation. scotland yard is taking a very aggressive tactic addressing rebekah brooke. they are getting involve and they not only sounded like they didn't run their newspapers, they sound like they didn't even head their newspapers. anyone who read news of the world or the sun could tell that there were hacked voice mails in there and they had no idea they
didn't have the proof. >> give us perspective he was passionate about newspapers. >> sure. this was the best selling newspaper in britain a lot of people and analysts within news corp. said why don't we get rid of the non-money makers and other media venchers. murdoch is an old newspaper man and that's how we came up. he has a sentimental attachment to the papers and when it comes to this side of the atlantic where he keeps the new york post and loses a lot of money and has a lot of influence in new york and nationally, it's because it's part of his power base. that paper and other outlets provide coverage to people who
she sympathetic to. not as people who are on the other side of it. it's a misnomer to say it's 1% of the bottom line. it looms larger on the stage and that's why i believe he is conflicted about what happened. he did not take personal responsibility at the hearing today what did you think about the testimony and his ability to deal with the crisis. i know you came back from several days in england >> you have to -- it's hard to imagine here how powerful the murdoch family is in great britain. the control of i believe it's almost 40% of the newspapers in the whole country plus the whole sky news business and he was
talking about being proactive. he seemed to be talking about the long answers. i don't think he implicated himself and the family will be pushed out. we control about 40% of the voting stock. i don't see that very docile board of directors rebelling against the people who still own that candy store. >> going to have good material sunday morning. thanks very much for coming in. critical developments in the u.s. debt crisis. a future plan with nothing outside the house of representatives. a agreeing concern that new leadership may be focussing on attacks with americans around the world. ok. [ cellphone rings ]
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they had at least one cigarette in the last week. that number has been declining for years and while they may be a shrinking minority, people who don't smoke and are around them take notice. over the last 10 years or so, study upon study revealed the long-term danger of smoking and exposure to secondhand smoke, smokers are welcome in fewer and fewer places. now comes a gallup poll that shows a majority of americans, 59% support a ban on smoking in all public places. that's the highest percentage in the 10 years that gallup has been asking the question in the poll. 27 states have already passed tough smoke-free laws. there is a law here that prohibits smoking just about any place including beaches and outdoor plazas. increasingly tough smoking law are in the pipelines around the country. while this growing majority don't want to be around people who smoke, they are not pushing
for an all out ban. only 19% say smoking ought to be made illegal. that percentage has been unchanged over the last five years. suffice it to say the battle between smokers and nonsmokers will likely continue. for now at least, the snaun shockers seem to have the upper hand. should smoking be banned in public? go to cnn.com/cafferty file an post a comment. >> thank you. let's go get to al qaeda. new indications the terror network could be shifting the overall strategy for targeting americans for the wake of bin laden's death. chris lawrence is monitoring new information. what are we learning here? >> u.s. officials say central al qaeda leadership, big al qaeda, if you will is weaker than it's been. it also has some limited resources. the new leader should be is more likely to align itself with the
direction of some of the affiliates and going after smaller targets overseas >> to his last day, osama bin laden was obsessed with staging a spectacular attack in america. an official said al zarqawi has a different strategy. he is more willing to have them attack regional targets, going after americans outside the u.s. >> one of the companies overseas -- >> he said pay special attention to u.s. defense contractors. in any private company where is americans work abroad >> what you don't always have with those employers are the same trained counter surveillance techniques and changing if you are walking or driving to work, changing your practices. >> the u.s. official said you need specialized operatives to get through the heightened security and it's easier to send a bomber to kabul than kansas
city. that combined with a weakened central command planes a range of affiliates conducting attacks around the world. >> for makes it more complicated for u.s. intelligence, law enforcement, and military agency. >> on the other hand, bin laden had patience. he would nurture a plot waiting for the right time. compare that to other recent attempts. the underwear bomber whose explosives started smoldering. in the sometime kwar skwair bomber whose device failed to detonate. >> they were not trained long enough to put together a proper explosive kwis. >> the death was just the latest set back to al qaeda. >> that may pressure the group including al zarqawi himself to pull off an attack, possibly
without going through all of the hoops that the attacks in the other locations. >> the the u.s. official said it remains to be seen whether other groups like these like the one in yemen will actually follow al zarqawi's direction and strategy. he had very public fights with other jihadives over the years and is not considered the easiest man to get along with. >> watching these developments at the pentagon, thank you. could there be a potential breakthrough in washington? why president obama now says a significant step has been made. we will tell you what's going on here in "the situation room" host: could switching to geico really save you 15% or more
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a house with the so-called cut and balance plan favor by conservatives as an answer to the u.s. debt crisis. let's go to kate baldwin for the latest. what's happening right now? >> they have been debating this for hours and sometimes it's been a heated debate over the cut cap balance bill that you just mentioned. this is a measure supported by house conservatives specifically that would dramatically cut spending and cap spending and also limit the size of government. here's the key point. it would allow for a debt limit increase only if congress passed a balanced budget to the constitution. a tall order. house republicans including eric kantor. they say this is the right path
towards deficit reduction. listen here. >> today the house has the opportunity to show the people that sent us here that we are serious about turning the page on the failed fiscal policies that this town has been about over the last several decades and begin to get the fiscal house in order. >> at the same time, they have really been slamming this proposal, this bill as more theater than serious policy. listen here to the congressman >> i'm not going to vote for the balanced budget and i urged them to reject the bill that has no chance of passage. we need to stop fiddling and do our work and make sure america can pay their debts f. they can't, every constituent will lose and our country will lose.
>> here's the reality. this bill is likely to pass the house. it's not expected to clear the senate. even if it did, president obama has already said he would veto it. this will likely be largely a symbolic vote for house republicans, allowing them to show their constituents and support for cuts and spending controls that has likely to be part of any compromised deal to raise the debt ceiling at this point. >> what's next after this vote which i guess will largely be symbolic? >> that's a good question. house speaker john boehner said before this vote, he has big hopes for cut cap balance and they continue to consider other options of plan b, but they are not tipping their hat at what a plan b might be. leaders point to this connell reid fall back plan. the last dish. it doesn't seem that members think they are to that point. i will tell you an important thing. there now a concerted effort
with house conservatives led by a tea party freshman, joe walsh. they are opposed to any compromise they sent a letter to speaker boehner and house majority leader kantor saying they should bring the replan to the floor for a vote >> the tea party express had a statement saying any one of the house of representatives who eventually votes for the compromise would be targeted for defeat in a primary or whatever. they were adamant that they hate that mcconnell's fail safe proposal. president obama took a swipe at the cut cap and balance plan today and came out generally in favor of the new plan putting to together by the group of senators consisting of a mix of tax changes and spending reductions >> it's very important in these next couple of days to understand we don't have more time to engage in symbolic
justers and more time to costure. it's time to get down to the business of solving the problem. i think we now are seeing the potential for a bipart an consensus around that wha that would take. >> let's go deeper with the chief. political analyst. jessica, explain to the viewer what is this gang of six proposal really is. the president was enthusiastien. >> here hugged it tight. it's a deficit reduction plan endorsed by three democratic senators and three republican senators. maybe now a fourth republican senator. they have been working on it for many months. it's not just bipart an. that's one reason the president likes it, but endorses the balanced approach. it would slash the def sis by 3.7 trillion over 10 years and cut spending and cap spending. two of the challenges, for
republicans to get on board in the house of representatives, they would have to be okay with one trillion in revenue. that's been one of the big issues when they are talking about the plans. more taxes, right. for the democrats to get on board, one of the hurdles is reigning in spending on social security and medicare. that is entitlement changes. democrats have big issues with that. this is a framework and not written legislation. it's a long way from here to getting done. we are on the clock. >> a lot of democrats won't like it either. there entitlement and social security. why did the president endorse for practical purpose? >> he did because he wants to isolate the house republicans. he wants to say look, mish mok connell has a back up plan and he's a republican. this gang of 6 is bipartisan senators. they have a plan and baner and i tried to come up with a plan.
guess who won't sign on to anything. there is a new poll out tonight. abc "washington post" poll show that is the president is actually making a lot of progress that shows 3/4 of americans believe that the republican leadership is being too resistant. that will be welcome news my sense is that if it were the senate, this gang of six plan would pass. the president would sign it. the question is, does it have 218 votes in the house of representatives? that's by no means a done deal. the tea party express and another tea party groups say no new taxes. you know what the argument is. >> it has all that revenue and will be hard to get the republicans. the entitlement promise.
>> the liberal democrats. it has 218 votes? >> it would be very hard to imagine it could pass right now. the bottom line is this is being used to say look, anybody who is serious about deficit reduction wants a balanced proosh. >> i was going to say it f it were just the senate, even john boehner, they would get a deal. there a lost republicans. that's why reid mcconnell legislation may be the only way to avert that default. >> that's the way they parachute out of all of this. i was talking to a senior republican who described it as a break glass kit. you are in the emergency. you are sitting behind the glass and you finally break the glass and you go with it the question is whether the house republicans -- i don't know if they have a --
>> god only knows. >> only half of house republicans voting for it? if you expect any house democrat krats to love it. they will not supply the votes unless they see that more than half of the people who run the house of representatives actually vote to raise the debt ceiling. they will not go out unless they see that. >> this will go down to august 2nd. >> i think it will. >> you will help me understand this. thanks very much. air traffic controller allegedly drunk on the job we are getting new details and michelle bachman is said to suffer from repeated debilitating migraines. could that interfere with her ability to be president of the united states? when the phones started flying, rupert murdoch's wife came to his rescue the really close shave. breathes easily.
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. monitoring two top stories in the newsroom. >> the u.s. government said it has exposed an illegal campaign to influence lawmakers over the conflict in kashmir. prosecutors charged that two alleged agents for pakistan fought millions as part of the plan. the complaint alleged they falsify and concealed information from the government and face up to five years in prison if convicted. pakistan and india disputed the status for decades. israel has stopped another ship trying to break the blockade of gaza. the navy sees the ship as part of a larger patilla as itted the coast. any supplies on board will be transferred legally to gaza. they insist on patrolling access because it said otherwise smugglers will try to ship to palestinian militants.
during a random test, a veteran air traffic controller had a blood alcohol level at a center that handles air traffic for several states. a family member said he was given the chance of resigning or entering rehab and chose rehab. football star michael vick is bringing his newfound dogfighting to capitol hill. the quarterback who served 20 months in prison on a dogfighting conviction is backing proposed legislation criminalizing stick tators of those who let children watch the sport. >> i deeply regret my previous involvement in dogfighting and i'm sorry for what i did to the animals. during my time in prison, i wanted to be part of the solution and not the problem. i have been speaking to kids and urging them to be responsible and to be good to animals. today i am here to send a similar message. to help address the problem and break the cycle.
i'm teaching these kids not to get mixed up in the crime. >> vick was released in 2009. what a turn around for him. >> good for him. he's doing the right thing and he paid a price. it was a horrible mistake, but at least he's doing the right thing >> new claims candidate michelle bachman suffers from what's described as incapacitating migraines. could that put her bid for the white house in jeopardy? it may have been the most dramatic moment in rupert murdoch's moment. why shaving cream brought everything to a screeching halt [ male announcer ] even in the most uncertain times,
new reports about the health of michelle bachman in the wake of claims she freiently suffers from incapacitating headaches. we are learning one reporter got roughed up to the process of asking her about it on the campaign trail today. lessa sylvester has details. what is going on? >> this is definitely a story that is picking up steam. bachman's campaign acknowledges
that she suffers from migraines and on medication to keep them under control. will it keep her from doing her job if elected president? a press secretary for the campaign sold cnn like millions of americans, congresswoman bachman suffers with migraines and they are under control when treated with medication. >> they want to blame it on you. >> at least three people paint a different picture in an article by the online publication. they describe them as incapacitating and debilitating and cite at least three time where is she had to be hospitalized because of the severe migraines >> about once a week she has one of the headaches occur. many times it can be a couple of hours many times it is also one or two days and the way they describe it is it incapacitates her and she can't function or work or focus on work-related matters.
>> according to the daily caller on three occasions, bachman had to cancel scheduled events. for those who suffer from migraines, they are more than a throbbing headache. they start in the mid-brain and then progress and involve the cerebral cortex. it affects vision, speech, and concentration, depending on the severity. >> imagine if you have a migraine and sensitivities to light and sound. you are nauseous. generally with the migraine, it's lying in bed with the lights out and the off and sometimes these last up to three days >> he hasn't treated her, but said metication helped. they t makes her more of a target. he addressed the issue head on. >> i am prescribed medication that i take when symptoms arise and they keep symptoms under control. my ability to function
effectively will not affect my ability to serve as commander in chief. >> that was reporter jonathan strong that we heard earlier in the piece. he broke the story and with the online daily publication. they reported that bachman suffers so severely she had to concancel events and missed votes. abc reporter brian ross tried to question her at that rally today in south carolina. he asked her whether she missed a house vote because of this and she refused to answer. he followed her into a parking area behind the stage and according to time reporter michael crowley who watched this unfolding, the aides grew alarmed. when he made a bee line, they pounced on ross, grabbing him, pushing him. he said he had never seen a reporter treated roughly at a
presidential campaign event. cnn spoke to him. >> they were man handling and pushing him. at one point looked like they were holding him back and pulling him away from her and he was trying to ask her the question. she just ignored the question. he repeated it over and over and she ignored it and got in her car and drove away. brian told me afterwards that i asked him immediately, did he think that was unusual and inappropriate to have that kind of treatment? he said that he had had that kind of treatment before, but it was by mafia people. they confirmed crowley's could of what happened. they said ross was repeatedly asked by security people to stay off the stage and he jumped up on there anyway.
they say it's not at all the way he portrayed it. they would not comment further. >> the daily tallers, the website that tucker carlson. thanks very much. should smoking in public be banned? jack cafferty is next with the cafferty file it's actually a connecting rod coming out to the side of the block this is a big piece of the engine block that was blown off. it's not because they ran it out of oil. they didn't change the oil. as your engine produces different particulants, you want to pick that up and take it down to the oil pan to the oil filter.
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let's get right back to jack for "the cafferty file." jack? >> the question this hour, wolf, is should smoking be banned in public? julie in connecticut said, no, it shouldn't be banned. being in public means you're willing to deal with the habits of others even those habits which you find offensive. david in virginia says, absolutely. why isn't smoking considered battery? the definition of battery is harmful or offensive touching. secondhand smoke has been proven to be harmful and it touches everything around it. walter says, no. i'm a former smoker. i feel the places where smokers can smoke have been narrowed to the extreme. if they go outside in the open and aren't bothering others, they ought to be left alone. we still have a few freedoms left, although we have lost enough of them. rich in texas, the federal government gets a dollar a pack on cigarettes sold in america. average state tax, $1.44, but
that varies from 17 cents in missouri to $4.35 in new york. that's a lot of tax revenue generated and a lot of jobs that would be lost if cigarettes and other tobacco products were banned. ed in california writes, i don't smoke or really drink for that matter. i don't mind the addicts smoking in public, but not in restaurants. there's nothing wrong with being polite. so, no, smoking doesn't have to be banned. i just hope the smokers consider their addiction. tim writes stinky perfume should be banned. body odor should be banned. body flatulence should be banned and jet planes should be banned, but not smoking. it's not a health issue, it's a whining issue. and dan writes, absolutely. we don't have enough government intervention in the lives of our citizens yet. let's keep going until we all end up prisoners in our own homes with the doors and windows shut tight. i'm just saying. if you want to read more, go to my blog, firstname.lastname@example.org. did you ever smoke?
>> i tried it in high school, a little bit in college. i got dizzy doing it and i thought, do you know what, somebody is telling you it's a bad idea, but i tried it. >> it's good you never started. >> no, i never really did. i know you're a recovering smoker, right? >> yeah, 25 years ago. i had a collapsed lung. it was, like, they were telling me something, too, maybe you should quit this. >> yeah. i think it's a bad idea to smoke. how did that no-smoking ban in public places working out in new york? >> i don't know. i mean, you see people outside the buildings, but i think it's for, like, the subways obviously the buses, the parks, the beaches, places like that. all the public areas no longer allowed. but you still see, you know, folks out on the sidewalks outside their buildings. >> but not in central park. >> i don't go in central park. >> it's a lovely park. all right, jack, see you tomorrow. thank you. for our north american viewers, two key senators getting ready to square off on the debt crisis. that's coming up on "john king, usa." but before that, jeanne moos
will take a look at rue better murdoch's close shave with a pie. we all have internal plumbing. but for some of us with overactive bladder, our pipes just don't work as well as they should. sometimes, i worry my pipes might leak. but i learned there's something more i can do. now, i take care with vesicare. once-daily vesicare can help control your bladder muscle and is proven to treat overactive bladder with symptoms of frequent urges and leaks day and night. if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have severe abdominal pain, or become constipated for three or more days. vesicare may cause blurred vision, so use caution while driving or doing unsafe tasks. common side effects are dry mouth, constipation,
it was perhaps the most dramatic moment of today's showdown in parliament. cnn's jeanne moos takes a closer look at rupert murdoch's close shave with a pie. >> reporter: wendy murdoch was easy to pick out in pink. when you're 38 years younger than your husband, it's nice to rub his back and pour him water before he testifies. she even restrained him when he pounded the table too much. but she didn't restrain herself when this happened. an activist pulled a foam-filled plastic pie plate out of a plastic bag. some of that foam landed on cnn producer jonathan wald as the attacker -- >> plunges it squarely into the face of rupert murdoch. >> reporter: and that's when his wife wendy whacked the guy. even picked up the plate. >> hit him back with it. it was all extremely dramatic. >> reporter: sort of reminds us of the woman who used her purse to try to knock the gun out of a hostage taker's hand.
>> no! >> reporter: at a school board meeting. >> this is the weapon. >> reporter: apart from shaving cream, all rupert murdoch got was a tongue lashing from hils attacker. >> you're a greedy billionaire. >> reporter: the activist who british media identified as johnny marbles had just sent a tweet saying it's a far better thing than i do now than i've ever done before, splat. it may have been more than a close shave for rupert murdoch, but at least he avoided major embarrassment by getting a face full off camera. unlike pie targets ann coulter and ralph nader who managed to throw his pie back at his attacker. bill gates got splattered and then his image got splattered for eternity all over the internet. anita bryant got pied by a gay demonstrator. >> every -- >> oh! >> well, at least it's a fruit pie.
>> let's break for him right now. >> reporter: first her husband prayed for the attacker. then he went outside and splattered him back. wendy murdoch was praised by a member of parliament. >> your wife has a very good left hook. >> reporter: or was his her right? regardless, the prankster temporarilily changed her wikipedia entry to say wendy used her ninja background to ward off an attacker. the move is now being referred to as the crouching wendy hidden dragon. after the attack, wendy tenderly cleaned off her husband. >> carefully wiping the foam off his jacket and his face. she was smiling and seemed quite happy that she had managed to score a blow. >> reporter: we watched her crossing her arms and crossing her legs, but it was the right cross we won't forget. jeanne moos, cnn, new york. >> she's tough. good for her. thank you very much, jeanne, for that report. that's it for me, thanks very much for watching. i'm wolf blitzer in "the situation room." for our international viewers,